DERMS software selection

Utilities around the world are implementing DERMS platforms to help them coordinate a burgeoning number of solar PV panels, wind farms, EVs, and other distributed energy resources. With this escalating demand comes the inevitable surge in suppliers. More than a dozen major providers are now in the field, and the global DERMS market—valued at $49 million in 2022—is expected to grow to $1.86 billion by 2030.1 

The sheer volume of choices available is enough to frustrate any utility looking to find the right DERMS solution for its operations. Each provider offers a different set of advantages in meeting key criteria, from alignment on utility needs to cost implications to ease of integration. Selecting the optimal solution for your utility can dramatically enhance the return on your DERMS tool investment. 

Logic20/20 works with you to identify your utility’s top DERMS use cases; then we analyze the current provider landscape to identify vendors that can satisfy your specific needs. 

Grid-centric and grid-edge DERMS solutions 

In the rapidly evolving DERMS software provider landscape, understanding the distinction between grid-centric and grid-edge approaches is essential for utilities seeking an optimal solution. Each approach offers unique benefits and aligns with different operational needs and grid management objectives. 

Grid-centric DERMS 

Designed primarily for centralized control, grid-centric DERMS manage and optimize DERs from the utility’s or grid operator’s perspective. These solutions focus on balancing supply and demand across large sections of the grid, maintaining stability, and ensuring efficient resource dispatch.  

Integrating directly with central utility systems like ADMS and EMS, grid-centric DERMS provide a high degree of visibility and control across the network. This approach is optimal for managing front-of-meter resources or larger behind-the-meter assets, particularly in cases where reliability and scalability are critical. 

Grid-edge DERMS 

In contrast, grid-edge DERMS operate closer to end users, focusing on optimizing DERs at the periphery of the power grid. They enhance grid reliability, resilience, and efficiency while supporting the integration of renewable energy sources into a decentralized network.  

Grid-edge DERMS typically manage smaller behind-the-meter devices, such as thermostats, water heaters, and EV charging stations. These systems also enhance utilities’ ability to engage end users in demand response and other distributed energy programs, making them an ideal choice for areas with high penetration of renewables and the need for local grid flexibility. 

Key distinctions between grid-centric and grid-edge DERMS

While grid-centric DERMS provide full network model awareness and a higher level of integration with central utility systems, grid-edge DERMS offer more localized control, often integrating indirectly through aggregations or partner systems. Many utilities find value in combining both approaches to address grid needs comprehensively​. 

Key considerations for DERMS vendor selection 

Selecting the right DERMS vendor requires evaluating multiple critical factors to ensure the solution aligns with long-term operational goals and integrates smoothly into existing systems. 

Assess each vendor’s capacity for scalability, support for multiple DER types, and experience with centralized and decentralized grid models 

Interoperability is essential, as the DERMS must communicate seamlessly with current infrastructure, including SCADA and ADMS platforms.  

A provider’s understanding of regulatory requirements and adaptability to evolving compliance standards can significantly impact the success of a DERMS deployment. 

Find the right DERMS provider for your needs 

Logic20/20 offers a comprehensive understanding of the DERMS vendor landscape, including how various solutions integrate with your existing and planned technology. We bring proven selection criteria, an in-depth selection methodology, and industry insights on leading providers, backed by hands-on experience implementing critical business cases. Let us help you select and deploy a DERMS solution that aligns with your utility’s operational and strategic goals.

Start your DERMS assessment today 

Your DERMS journey starts with a comprehensive assessment of the ecosystem and a strategic roadmap to ensure success.  

  • Use case development and prioritization: We build a framework to compare and prioritize key DERMS use cases. 
  • DERMS vendor landscape assessment: We align vendors’ functionalities to your critical use cases. 
  • Strategic roadmap: We establish key milestones for achieving your DER management vision. 

Ready to get started? Let’s talk.

Logic20/20 is a high-value business and technology consulting firm. We elevate client performance using strategy, technology, and data.

Our utility team helps utilities leverage technology to get the most out of existing investments and new discoveries in powering a brighter future.

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